There is a clear agenda that has been set by the federal government over our so-called public lands or federal lands; whichever name you prefer. The battle lines were drawn up with the passage of the Federal Land Policy and Management Act of 1976. This, in retrospect, has created an all-out.
One of the more lively discussions was about source verification, which is absolutely needed for the U.S. to sell beef to China—a country that provides a huge consumer market for beef and will be needed to maintain profitable live cattle prices at the upper end of the trading spectrum.
I’m sure cattle feeders will be happy to see 2015 come to a close. It was by far the toughest year ever for cattle feeders. Jim Robb at the Livestock Marketing Information Center (LMIC) and I were trying to figure out what kind of year cattle feeders had, the LMIC calculated the average loss on fed cattle was $295 per head, and with 23.
The CME is a private marketplace with a board of directors and shareholders, who expect a return on their investments. They are in the business of conducting a trading platform for a variety of markets. As far as they’re concerned, the more contracts the better.
World Trade Organization (WTO) allowed Mexico and Canada tariff relief over country-oforigin labeling (COOL) last week. The WTO ruled several times against the COOL law, which violated U.S. trade obligations and discriminates against Canadian and Mexican CROW.
After last week’s disappointing futures trade I’m sure that everyone is asking where the bottom is in this cattle market. The week after Thanksgiving usually produces a rally on live cattle as packers gear up for Christmas, one of the best demand times of the year.
The USDA’s Food Safety Inspection Service (FSIS) wants to add Namibia to the list of countries that can export to the U.S. The U.S. does represent one of the most robust markets for beef products in the world and it appears that every beef producing country wants a piece.
markets are on a terror and have sucked the life out of the cash cattle markets. Over the past six weeks we were down $20 on fed cattle, then we were up $20, and now we’re back down $20. I think we all expected some volatility in the market but this is CROW.
Risk management is a term you might forget about when it comes to the cattle business because there just isn’t any. The futures markets just don’t seem able to find value or price discovery. Last Wednesday all contracts were down the limit $4.50 for feeder cattle and $3 for live cattle.
It didn’t take the bull market players long to figure out that the cattle market bust came a bit too fast and went a bit too far. October cattle futures rallied back to $140. In just a week-and-a-half. Markets are the markets and there is no rhyme or reason as to where they go sometimes.
The Hammond family in Oregon must be in utter disbelief after the Ninth Circuit Court of Appeals demanded that Dwight and Steven go back to jail for the fires they were convicted in 2012 of setting. Time was already served by the pair and for some reason the Department of Justice (DOJ) simply.
Packers had a fire sale last Wednesday to clear inventories and moved 281 loads of beef in one day. The cutout dropped down to $203, but put on another dollar a day later. They were earning $90 a head at mid-week and cut the slaughter rates to shore up the cutout values.
So now we ask the question: Why? In the big picture there isn’t much more beef available than there was a year ago. I know that everyone is asking when we will hit the bottom and when will it come—obviously questions that no one really knows how to answer.
Cattlemen and natural resource users across the West dodged a bullet last week when Secretary of Interior Sally Jewell announced that the government would not be listing the greater sage-grouse as an endangered species. However, she did say that the BLM and Forest Service were going to go ahead.
The Forest Service decided to borrow another $250 million from the forest management program to battle the wildfires, bringing a total of $700 million in funds that were destined for other Forest Service projects.
The cattle markets have been adjusting over the past several weeks. Calf sellers were looking pretty good in early summer but cattle feeders finally realized that they just can’t spend as much for yearlings as they did a year ago. The August futures market was keeping a bit of a floor CROW.
We have forest management plans that are unworkable and unresponsive to local needs. The current wildfire situation is a symptom of forest negligence, which to a large degree is part of the 1970s environmental law boon.